Daily Prelims Notes 24 March 2021
- March 24, 2021
- Posted by: OptimizeIAS Team
- Category: DPN
Daily Prelims Notes
24 March 2021
Table Of Contents
- Women harder hit by job losses due to Pandemic
- Lachit Borphukan
- National Disaster Management Force
- DARPAN
- Relaxation of Valuation of AT1 bonds
- UNHRC vote on Sri Lanka’s Human right records
- Finance bill
- Sixth schedule
- Petrol and Diesel future inclusion in GST
1. Women harder hit by job losses due to Pandemic
Subject: Economy
Context: According to the recently released PLFS and CMIE data the women has been hit harder by the pandemic w.r.t participation in workforce.
Concept:
- From 16.4% in May-August of 2016, the female labour participation rate (employed women as a proportion of all women of working age) fell consistently after the demonetisation shock to stabilise at around 11% between mid-2018 and early 2020, according to estimates of Mumbai-based Centre for Monitoring Indian Economy (CMIE)
- The pandemic, by most accounts, dealt this a hammer blow, pushing this number to around 9 per cent.
- Women, according to the CMIE, accounted for 10.7% of the workforce in 2019-20, but they accounted for 13.9% of the job losses in April 2020 — the first month of the lockdown shock. By November 2020, while men recovered most of their lost jobs, women were less fortunate. CMIE estimates that 49% of the total job losses by November 2020 were of women.
Factors for higher impact on women:
- Textiles and contact service providers employing more women were hardest hit
- schools were shut down and the family unit was under pressure, many women workers, once they lost their jobs, quickly slid back to their full-time role as home-makers and care-givers
- lack of transport
- Retail has been affected, resulting in an impact to sectors such as garment manufacturing which employs women more
Subject: Medieval history
Context: Assam polls have seen frequent invocation of Ahom warrior Lachit Borphukan as Hindu warrior and one who defeated Mughals.
Concept:
- Remembered as the greatest military hero of Assam, LachitBorphukan was a general of Ahom kings.
- He is best known for the Battle of Saraighat (1671) on the Brahmaputra, where he beat the Mughals.
- He is best remembered as high point of Ahom empire when Assamese race was united and able to fight an alien, formidable force such as the Mughals
- Lachit Divas has been celebrated on November 24 (his birth anniversary) in Assam since the 1930s
3. National Disaster Management Force
Subject: Disaster Management
Context: The Parliamentary standing committee on water resources has started reviewing disaster management of flood post-Uttarakhand flood.
Concept:
- The Disaster Management Act has statutory provisions for constitution of National Disaster Response Force (NDRF) for the purpose of specialized response to natural and man-made disasters.
- The practice of “proactive availability” of this Force to the States and that of “pre-positioning”, in a threatening disaster situation have immensely helped minimise damage, caused due to natural calamities in the country.
- Besides the professionalism shown during rescue operations in floods and cyclones and collapsed structure search and rescue (CSSR) operations, NDRF has also acquired considerable expertise in facing CBRN (Chemical, Biological, Radiological& Nuclear) challenges.
- It is unique force across the country functioning under the Ministry of Home Affairs, Government of India, within the overall command, control and leadership of the Director General, NDRF.
- At present, National Disaster Response Force consist of 12 battalions, three each from the BSF and CRPF and two each from CISF, ITBP and SSB.
Subject: Governance
Context: Apart from a new policy to regulate civil society, Niti Aayog is workin on DARPAN 2.0.
Concept:
- NGO-DARPAN is a platform that provides space for interface between Non-Government organizations (NGOs)/ Voluntary Organizations (VOs) in the country and key Government Ministries / Departments / Government Bodies.
- Initially an initiative of PMO, to create and promote a healthy partnership between NGOs/VOs and the Government of India, Now it is an e-governance application offered by NITI Aayog to electronically maintain data and transparency regarding NGOs/VOs in the country.
- The NGO-DARPAN was earlier maintained by erstwhile Planning Commission, which has been replaced by the NITI Aayog in 2015.
- an NGO has to first sign-up on the NGO-DARPAN portal to obtain a Unique Identity Number (UIN) by furnishing the required details like registration number of the organization, PAN of the organization, PAN and Aadhar details of the office bearers/trustees etc. to transact business with the ministries and departments.
5. Relaxation of Valuation of AT1 bonds
Subject: Economy
Context: SEBI has relaxed the valuation of ATI bonds after finance ministry asked for it.
Concept:
- Relaxation: The deemed residual maturity of Basel III AT-1 bonds will be 10 years until March 31, 2022. It will be increased to 20 years from April 1, 2022 to September 2022, and 30 years for the subsequent six-month period. From April 2023, the residual maturity will become 100 years from the date of issuance of the bond.
About AT1 bonds:
- AT-1 bonds are a type of unsecured, perpetual bonds that banks issue to shore up their core capital base to meet the Basel-III norms.
- There are two routes through which these bonds can be acquired:
- Initial private placement offers of AT-1 bonds by banks seeking to raise money.
- Secondary market buys of already-traded AT-1 bonds.
- AT-1 bonds are like any other bonds issued by banks and companies, but pay a slightly higher rate of interest compared to other bonds.
- These bonds are also listed and traded on the exchanges. So, if an AT-1 bondholder needs money, he can sell it in the secondary market.
- Investors cannot return these bonds to the issuing bank and get the money. i.e there is no put option available to its holders.
- However, the issuing banks have the option to recall AT-1 bonds issued by them (termed call options that allow banks to redeem them after 5 or 10 years).
- Banks issuing AT-1 bonds can skip interest payouts for a particular year or even reduce the bonds’ face value.
- AT-1 bonds are regulated by RBI. If the RBI feels that a bank needs a rescue, it can simply ask the bank to write off its outstanding AT-1 bonds without consulting its investors.
Impact of relaxation:
- There won’t be panic redemptions, but banks are unlikely to be fully happy with the partial relief.
- AT1 bonds have emerged as the capital instrument of choice for state banks as they strive to shore up capital ratios. A major chunk of AT1 bonds is bought by MFs. For banks, the latest SEBI relaxation doesn’t give any major relief as they are likely to find it difficult to get investors for AT1 bonds.
6. UNHRC vote on Sri Lanka’s Human right records
Subject: International Relations
Context: A total of 22 countries out of 47 members of UNHRC voted for the resolution that was very critical of Sri Lanka’s failure to address human rights violations that occurred during the civil war.
Concept:
- Eleven countries, including Bangladesh, China and Pakistan, voted against the resolution, while 14 countries, including India, Indonesia, Japan and Nepal, abstained.
- The resolution called on it to hold human rights abusers to account and deliver justice to victims of its 26-year civil war (1983-2009).
India’s Stand on Previous Resolutions Against Sri Lanka:
- India voted against Sri Lanka in 2012.
- India abstained in 2014.
Subject: Polity
Context: The Lok Sabha on Tuesday passed the Finance Bill, 2021, which gives effect to the financial proposals of the central government for the financial year 2021-22.
Concept:
- A Finance Bill concerns the country’s finances i.e., it could be about taxes, government expenditures, government borrowings, revenues, etc.
- Rule 219 of the Rules of Procedure of Lok Sabha states: ‘Finance Bill’ means the Bill ordinarily introduced in each year to give effect to the financial proposals of the Government of India for the following financial year and includes a Bill to give effect to supplementary financial proposals for any period.
- It is introduced in Lok Sabha after the presentation of the annual Budget is passed by the House.
Money Bills and Financial Bills: Constitutional provision
- Money Bills–Article 110
- Financial Bills (I)– Article 117 (1)
- Financial Bills (II)– Article 117 (3)
Money bill vs financial bill
- All Money bills are Financial bills but all Financial bills are not Money bills.
- Only those financial bills are Money bills which contain exclusively those matters which are mentioned in Article 110 of the Constitution.
Financial Bills (I)
- A financial bill (I) contains not only any or all the matters mentioned in the Money Bill, but also other matters of general legislation. It is dealt under Article 117 (1) of the Constitution.
Similarity to a money bill:
- Both of them can be introduced only in the Lok Sabha and not in the Rajya Sabha.
- Both of them can be introduced only on the recommendation of the President.
- In all other respects, a financial bill (I) is treated as an ordinary bill.
Financial Bills (II)
- A financial bill (II) contains provisions involving expenditure from the Consolidated Fund of India, but does not include any of the matters mentioned in Article 110. It is dealt under Article 117 (3) of the Constitution.
- It is governed by the same legislative procedure which is applicable to an ordinary bill.
- Such Bills can be introduced in either House of Parliament. However, recommendation of the President is essential for consideration of these Bills by either House and unless such recommendation is received, neither House can pass the Bill.
Subject: Polity
Context: The Ministry of Home Affairs (MHA) informed the Lok Sabha on Tuesday that “presently, there is no proposal to implement Panchayat system in Sixth Schedule areas of Assam”.
Concept:
- Currently there is no Panchayat system in Sixth Schedule areas of Assam
- Protects tribal populations and provides autonomy to the communities through creation of autonomous development councils that can frame laws on land, public health, agriculture and others.
- As of now, 10 autonomous councils (North Cachar Hills, KarbiAnglong and the Bodoland Territorial Area in Assam, Khasi Hills, Jaintiya Hills and Garo Hills in Meghalaya, Tribal Areas in Tripura, Chakma, Mara and Lai districts in Mizoram.) exist in Assam, Meghalaya, Tripura and Mizoram, according to Article 244 of the Indian Constitution.
- ADCs are bodies representing a district to which the Constitution has given varying degrees of autonomy within the state legislature.
- The Governors of these states are empowered to reorganise boundaries of the tribal areas.
- Along with ADCs, the Sixth Schedule also provides for separate Regional Councils for each area constituted as an autonomous region.
- Each autonomous district and regional council consists of not more than 30 members, of which four are nominated by the governor and the rest via elections. All of them remain in power for a term of five years.
- The Bodoland Territorial Council, however, is an exception as it can constitute up to 46 members.
- 125th Amendment) Bill, 2019 presently in house provides for elected village municipal councils and increases financial and executive powers of the autonomous councils. The State Election Commissions will hold elections to the autonomous councils, village and municipal councils.
9. Petrol and Diesel future inclusion in GST
Subject: Economy
Context:
Concept:
- In 2017 when GST was brought in five commodities – crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) were kept out of it.
- GST sought to subsume dozen central and state levies under a single tax structure.
- This meant that the central government continued to levy excise duty while state levied VAT on these excluded items.
- Recent price rise in fuel is also due to this tax structure.
- The laws says that the GST Council shall recommend the date on which the goods and service tax shall be levied on these five commodities (so far no recommendation).
- Including oil products in GST will not just help companies set off tax that they paid on input but will also bring about uniformity in taxation on the fuels in the country.
About GST council: